[China Glass Network] In July of the summer of 1998, we heard that the grievances of Chinese business owners have gradually risen.

In the face of the dilemma of the market downturn, what should Chinese companies do? What kind of market game is it taking? It is the hope of the changes in the big environment and the resurgence of the country's favorable policies, or the enterprise to rise up and innovate to choose a new way out. These problems and choices are like a sharp Damocles sword, hanging high on the head of every Chinese business owner.

How will Chinese companies in reality face the market?

It is like a sparrow that has been scared by a depressed market, pitifully shrinking under a small eaves, or fighting the sea like a swallow. The vast majority of companies have adopted a passive and conservative attitude: to reduce market costs, reduce personnel, stop brand promotion, and abandon product innovations... Most of them use instinct to adopt price reduction marketing, and hope to open the market by low-cost marketing.

But what about the results? Obviously not ideal. In the downturn of the market, low-cost driving is not a panacea. why? There are three reasons:

First, the market downturn is not aimed at a certain enterprise, but an industry as a whole. Therefore, it is a common problem of the industry. Where the common problem is to develop a specific solution for each company's specific state, rather than simply cutting prices.

Second, the price war is almost a quick and profitable approach adopted by Chinese companies in the face of difficulties. When an industrial group faces market dilemma, one of the companies will pay a banner of low prices, and other companies will adopt this approach invariably. Therefore, in addition to weakening the profits of enterprises and the value of the entire industry, the strategy of price reduction No benefit.

Third, bring serious injuries to the enterprise. The price cut has not only led to the depreciation of the brand of the company, but also exhausted the source of corporate profits, resulting in no resource innovation. Of course, if the company does not survive, it will be bankrupt.

So, in the downturn of the market, what better way is the company besides the price war?

Shanghai strategic brand marketing planning agency believes that the Chinese enterprises have a lot of ways out, and each company's way out is also varied. It can be said that the method is ever-changing. But from the perspective of regularity, we can find a way out from the following three aspects.

Reshaping the firm confidence of the company in the market

When the economy is in a downturn, countless companies are in trouble. In fact, the most effective solution is to establish market confidence, not price cuts. Enterprises should objectively examine themselves, find their own advantages, and turn advantages into productivity. Regardless of the size of the world market, as far as China is concerned, the scope of the Chinese market is equivalent to that of the whole of Europe. The consumption power of China's 1.3 billion people is immeasurable. When the Chinese market is completed, there is no way for enterprises to do so.

The history of world industrial development proves that when difficulties come, companies that have survived difficult times will often have great competitiveness. In other words, any enterprise that has passed the economic downturn can become a business.

Branding the brand that the target consumer agrees with is a costly, time-cycled, and highly specialized project in the minds of many business owners in China. To this end, many companies stay away from it, or change the money for branding to price reduction promotions.

However, there are two rules for companies to do branding:

One is to make super-brands such as Coca-Cola, IBM, and Haier.

The other is a brand that is highly recognized by the target consumers. Such as Fangtai, Shuaikang in the range hood, Aopu in the Yuba, Emmett in the fan, Shenzhou in the water heater, energy rate.

It is not too difficult to be the brand that the target consumers agree with. As long as you carefully analyze the consumer psychology of this target group and let your brand “scarce value” fit their values, your brand will succeed.

China is about to enter a middle-aged society. With the accumulation of Chinese family wealth, people will have less purchasing power for pure-material products and low-priced products, and will be willing to buy products with higher value that meet their spiritual identity, even if these products are expensive. We can prove from the growth law of luxury goods in the Chinese market.

If a consumer buys a product with a high premium, the premise is that the brand's "scarce value" is recognized by him, not just knowing.

Innovation <br> <br> mediocre companies targeted consumer demand is unlikely to understand consumer demand, product do take it for granted, resulting in product and market seriously out of line compared with the final sales price.

The company is to understand and meet the needs of consumers to provide products and services, and to transform the operation of the company into commercial value.

In addition to fully meeting the needs of consumers, the outstanding enterprises can also gain insight into the needs of consumers and create the needs of consumers in advance, thus creating a huge and new blue ocean market. For example, Mercedes in the car, Whirlpool in the washing machine, Nokia and Apple in the mobile phone, Shenzhou in the gas appliance, Tianshu in the air energy...

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